1975
490
$505,000
$40,000
$1,100,000
No
El Pollo Loco is one of America’s most beloved quick-service restaurant franchises, known for its authentic Mexican-inspired fire-grilled chicken and wholesome, flavorful meals. Founded on a commitment to fresh ingredients and bold flavors, El Pollo Loco has become a go-to destination for health-conscious diners who crave real food, fast. With decades of strong market presence and an established operational model, the El Pollo Loco franchise offers entrepreneurs a chance to join a trusted brand with a passionate customer base and exceptional franchisee support.
In a world where consumers are increasingly seeking better-for-you dining options, El Pollo Loco stands out by blending traditional Mexican recipes with modern quick-service convenience. From burritos and tacos to flame-grilled chicken marinated in a proprietary citrus blend, the brand delivers quality that keeps customers coming back. With over 490 locations across the United States, El Pollo Loco continues to expand its footprint, offering lucrative opportunities for franchise owners to grow with a powerful and recognizable restaurant brand.
Investing in an El Pollo Loco franchise means aligning with one of the most successful and respected brands in the quick-service restaurant industry. The brand’s focus on fresh, grilled-to-order meals has created a loyal following and a unique competitive advantage in the fast-casual dining market.
Here’s why it’s a smart investment:
Proven Business Model: With decades of operational success, El Pollo Loco provides a streamlined system for new franchisees to succeed quickly.
Strong Brand Recognition: A household name with a reputation built on authenticity, quality, and community connection.
Growing Industry: The demand for healthier, protein-rich, and fresh food options continues to rise across the USA.
Robust Training and Support: Franchisees receive end-to-end guidance on operations, marketing, and management.
Flexible Store Formats: Options for drive-thru, inline, and free-standing locations, tailored to your market demographics.
Scalable Growth Potential: With territories still available across the U.S., franchise owners can expand into multi-unit operations.
El Pollo Loco’s story began in 1975 in Guasave, Sinaloa, Mexico, when Juan Francisco Ochoa, affectionately known as “El Pollo,” created his unique recipe for citrus-marinated, fire-grilled chicken. The flavorful concept quickly gained popularity, attracting long lines of customers who couldn’t resist the brand’s signature grilled chicken infused with authentic Mexican spices and served with fresh, handcrafted sides.
Encouraged by its overwhelming success in Mexico, Ochoa decided to expand the brand to the United States, opening the first U.S. location in Los Angeles, California, in 1980. The brand’s focus on real, fresh food prepared daily and its vibrant Mexican heritage resonated deeply with American consumers. Over the decades, El Pollo Loco evolved from a small neighborhood eatery into a powerful name in the fast-casual and quick-service restaurant industry, leading the way in flame-grilled chicken dining experiences.
Today, El Pollo Loco Holdings, Inc. (NASDAQ: LOCO) operates its headquarters in Costa Mesa, California, and has become one of the most recognizable restaurant franchises in the Western and Southwestern United States. The brand has grown to over 490 restaurants, a mix of company-owned and franchised locations, across key states including California, Arizona, Nevada, Texas, Utah, and Louisiana—with continued expansion plans into new U.S. markets.
Throughout its journey, El Pollo Loco has remained committed to three key principles:
Authenticity: Staying true to its Mexican roots with handcrafted recipes and fresh ingredients.
Community: Building connections through shared meals and local engagement.
Quality: Delivering fresh, grilled-to-order chicken and wholesome sides that align with the growing demand for healthier dining options.
As a result, El Pollo Loco has become synonymous with flavorful, guilt-free dining that bridges the gap between traditional comfort food and modern fast-casual convenience. With its strong legacy, proven franchise model, and loyal customer following, El Pollo Loco continues to inspire entrepreneurs seeking to join a trusted and enduring brand in America’s restaurant landscape.
El Pollo Loco believes that the success of its franchisees directly reflects the success of the brand. To ensure every partner thrives, the company provides comprehensive training and operational support from day one.
Pre-Opening Support:
Assistance with site selection, lease negotiation, and restaurant design.
Guidance on permits, construction, and setup to meet brand standards.
Pre-launch marketing strategies to build awareness before grand opening.
Initial Training:
Intensive multi-week training at certified El Pollo Loco training centers.
Hands-on experience in restaurant operations, staffing, inventory, and food preparation.
Management development programs designed for owners and store leaders.
Ongoing Support:
Continuous field support visits from experienced franchise consultants.
Access to a dedicated marketing team and national advertising initiatives.
Regular updates on new menu innovations, technology upgrades, and supply chain optimization.
Online learning platforms and webinars for ongoing education and staff training.
This robust support infrastructure ensures that every franchisee can confidently operate their restaurant and maintain the high standards that define El Pollo Loco.
El Pollo Loco is seeking passionate, business-minded entrepreneurs who want to bring flavorful, authentic, and community-driven dining experiences to their local markets. The ideal franchisee is not just an investor but a hands-on operator and brand ambassador who values quality, hospitality, and operational excellence.
Below is a detailed overview of the traits and qualifications that define the ideal El Pollo Loco franchise owner:
Restaurant or Retail Experience: Prior experience in restaurant management, hospitality, food service, or multi-unit operations is highly preferred.
Leadership & Team Management: The ability to build, lead, and motivate a strong team to deliver excellent customer experiences.
Operational Discipline: Strong organizational and problem-solving skills to ensure smooth day-to-day operations in a fast-paced environment.
Community-Oriented Mindset: A passion for engaging with the local community and creating loyal customers through great service and outreach.
Minimum Liquid Capital: $300,000
Net Worth Requirement: $1,000,000 (recommended)
Ability to Secure Financing: Franchisees should have access to sufficient funding to cover start-up costs, working capital, and early-stage marketing.
El Pollo Loco looks for partners who are financially capable of sustaining operations through the initial ramp-up phase and prepared for multi-unit ownership potential in the future.
Passionate About Food & Culture: Enthusiasm for delivering authentic, freshly prepared Mexican-inspired food that connects with customers on a personal level.
Commitment to the Brand: Dedication to maintaining El Pollo Loco’s high standards for quality, cleanliness, and service.
Growth-Oriented: Ambition to scale operations and own multiple units over time, taking advantage of the brand’s expanding U.S. footprint.
Customer-Focused Mindset: A genuine interest in enhancing guest satisfaction and creating repeat business through consistent, exceptional service.
Hands-On Leadership: Willingness to be actively involved in the business, ensuring every detail—from kitchen operations to guest interactions—reflects the brand’s excellence.
El Pollo Loco is expanding across the Western, Southwestern, and Southern United States, with high-priority markets in states such as California, Arizona, Nevada, Texas, Colorado, and Florida. Ideal franchisees are encouraged to explore territories with strong population density, diverse demographics, and vibrant local dining cultures.
| Category | Estimated Cost (USD) | Details & Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | Paid upfront when signing the Franchise Agreement; grants rights to operate under the El Pollo Loco brand. |
| Total Initial Investment | $505,000 – $1,100,000 | Includes all costs from site selection to grand opening. Varies by location, size, and local construction costs. |
| Minimum Liquid Capital Required | $300,000 | The amount of readily available cash or equivalent to cover startup and early operational expenses. |
| Minimum Net Worth | $1,000,000 | Demonstrates overall financial stability and long-term business capacity. |
| Royalty Fee | 5% of Gross Sales | Paid weekly; covers ongoing brand, operational, and corporate support. |
| Marketing & Advertising Fee | 4% of Gross Sales | Contributes to national and regional marketing campaigns, brand awareness, and local promotions. |
| Leasehold Improvements | $250,000 – $500,000 | Construction and design costs to meet El Pollo Loco’s restaurant standards. |
| Equipment, Furniture & Fixtures | $150,000 – $250,000 | Includes kitchen equipment, grills, signage, seating, and interior decor. |
| Training Expenses | $10,000 – $20,000 | Covers travel and accommodation during the mandatory franchise training program. |
| Grand Opening Marketing Budget | $10,000 – $15,000 | Initial marketing and promotional spend for the pre-launch and opening campaign. |
| Initial Inventory | $10,000 – $20,000 | Includes ingredients, packaging, uniforms, and supplies. |
| Working Capital (First 3 Months) | $40,000 – $100,000 | Covers payroll, utilities, and other operating costs during the ramp-up phase. |
| Franchise Term | 20 Years (Renewable) | Offers long-term stability with potential for multi-unit expansion. |
| Average Unit Volume (AUV) | $1.9 Million+ | Based on system-wide average annual sales for franchised locations. |
| Expected ROI | 12% – 18% (Estimated Range) | Depends on location, operational efficiency, and management quality. |
| Break-Even Point | 24 – 36 Months (Typical Range) | Most franchisees recover initial investment within 2–3 years of operation. |
| Franchise Units (Approx.) | 490+ Locations Nationwide | A mix of company-owned and franchised outlets across multiple states. |
| Revenue Streams | Dine-in, Drive-Thru, Takeout, Delivery, Catering | Diverse income channels ensure consistent cash flow and scalability. |
